Where is the Industry Headed?

Kegler Brown Construction NewsletterApril 1, 2012by Don Gregory

While construction demand still remains sluggish at best, a modest increase in construction is forecasted for 2012. Many contractors are reporting increased inquiries and activities in sectors that have been neglected for years, while the industry focused on medical, educational and federal work (“meds, eds & feds”) for its survival in the Great Recession.

Public construction nationwide has recently seen its first increase in almost six (6) years. Architectural billings are up in this part of the country. Ohio, and particularly Central Ohio, is showing less unemployment than national figures.

In Ohio, we are seeing more and more public owners adopting the new design-build, CM at-risk and general contracting models, as they seek to avoid the coordination responsibilities of multi-prime contracting and prefer the subjectivity of a proposal-based “best value” selection process rather than bid selection. Time will tell what effect this has on locally owned contractors who will be regularly competing against large national and international firms for this type of work.